Top 7 Benefits of Forensic Auditing You Should Know About
by Manoj Pahwa Ca Manoj PahwaFinancial
auditing services ensure that a business is conducted by the legal and ethical
standards set by the local governments. By tracking the trail of transactions
by the business, a forensic auditor prevents that business from committing any
type of fraud and hoodwinking authorities and regulatory bodies. Thus, Manoj Pahwa and Associates provide
their services as an independent party to ensure the regulatory bodies are
never cheated and your business remains legally strong.
What
does a Forensic auditing team do?
A forensic
auditing team tracks the trail of transactions like sales, purchases,
regulatory compliance filed and tries to identify both the fraudsters and gaps
within an organization to prevent future fraudulent activities.
Benefits
of Forensic auditing
The primary
benefits of forensic auditing are as follows:
1. Reducing costs: because only
an independent party is responsible for conducting forensic auditing, you can
expect the cost to be far lower than you think. By ensuring an unbiased
approach to auditing, you can ensure that your business don’t incur legal
losses due to your misplaced judgement.
2. Providing effective solutions: Forensic
auditing, by mapping a money trail, can also map any gaps that you have in your
current financial operations. By
plugging those gaps, you prevent your business from being buried under the
weight of legal penalties.
3. Risk assessment: Auditing is
done only by certified Chartered Accountants, they pool all their knowledge to
check, and then recheck your financial accounts to create a comprehensive
report for you. In doing so, they establish a consolidated report to ensure
that your business doesn’t fall down.
4. Legal support: Forensic
auditors give you a closer look into the legal issues you might be facing. By
dealing with your issues, you get the legal support you need to keep your
organization legally relevant.
5. Tracking illegal activities: This benefit
is the primary function of forensic accounting. By trailing the money, an
auditor can shed a light on the illegal activities that happening within an
organization to cheat the regulatory authorities.
6. Creating better economic policies: Forensic
auditing helps noting down the risks to the finances of the company. In the
report that it generates, it also specifies the current gaps within the
organization’s accounting structure. That report can be used to formulate
better economic policies in the future.
7. Simplifying litigation: Forensic
auditing reports presents a complete picture of the organization’s finances,
complete with records of all the transactions, and discrepancies. Such a report
is easier to present in a court of law if there is a lawsuit filed against a
company.
Conclusion
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Created on Jul 11th 2020 06:08. Viewed 336 times.